Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1887-10-30
PUBIC qELEGRAPHS.
Tia Extraordinary Expansion OF the
Western UnioE-The Remnant
OF Opposition.
Overwhelming Aggregation OF 3apitsl-s
Fair and wholly martial Review
OF the Situation,
Bradstreet' 6.


The absorption of the system OF tele-
graph which had been erected under the
auspices and control OF the Baltimore end
Ohio Railroad Company By the Western
Union Company closes another Of the
attempts which have been made from
time to time to MAINTAIN successful and
permanent opposition to the latter or
ganizstion. Ia no country In the civilized
world has telegrsphy made greater strides
In point of scientific and mechanical per-
lection than in the United States, and in
none does It's use enter more intimately
into the fabric of the business and social
life Of the people. At the same time the
history of telegraphy in the United
States for years past has been that OF
lis gigantic corporation aud of the steps
By which it has absorbed its competitors.
The most striking feature In connecti' n
with the formation of the Western Union
Company is the immense addition to it's
capitalization which has followed each
succes sive consolidation, resulting be-
fore the last event in it's having share
capital Of $50 600, 900, a bonded debt OF
over 81, 600 600 and outstanding guaran
tees upon the stock and bonds OF other
cable and telegraph companies amount
ing to say S25, 900, 900, or IN ell capital
jzation of some Sis, 100000. Apart
from the notorious fact of the extent to
which what is known as water entered
into these additions to its capital, it may
we'll be doubted whether the conpany's
sxisting plant represents enythii g ike
ouch a valuation. Forming, as it
does, according to the last report, 8 sys-
tenn of $4,000 miles of poles, with
522, 900 miles of wire, Is, GOO offices, trans
hitting over $4,000, 600 messages In
year, and having gross receipts OF ST.
600, 900, it constitutes a concern OF the
greatest magnitude, and, reaching, as 1t
does, almost every railroad station or
hamlet in the country, as well as all the
important centers OF population, It's in
fuepce is more widespread than any other
corporation.
The Baltimore and Ohio Telegraph sys-
tenn was an outgrowth of that aggressive
| spirit which characterized the manage
ment of the railroad CO "pany under the
! Garretts-tather and Son-snd whict car
ried to extremes, has resulted In the
present situation Of that property. De-
cliniDg as 8 settled principle 60 turn over
| the telegraph lines of the road to the West
/ ern Union company, and entertaining, II
would seem, personal sntagonism to
| the individual most prominent IN the man
/ sgemeut of the latter, the idea OF forming
an extensive system of telegraph in oppS-
sitiOn to il, seems to have been a cher
isbed itles Of the elder Care t, which his
son and successor carried into effect. Tne
telegraph lines owned by the Baltimore
and Ohio Railroad, extending from Balti-
more to Chicago. finished the nucleus and
the building OF new lines TO important
cities resulted, by 1885, in the foTmstlon
of system which Wss able to iDaugurste
on effective competition with the Western
Union in telegraphy between nearly al
The important Northern centers. OF popu-
lztion
At the present time the Baltimore and
Ohio wires extend from Portland, Me-, IN
the north to South Carolina, aud reach
their extreme limit IN ST.. Paul in the
northwest aud Texas points in the south
west. Approximately it owns or con-
trolls aboul 1900 miles of lines, Including
some 55 600 miles of wires and about l1OO
Offices Exact reports Of the telegraph
organiZatlun's operations have never been
published, and while the indebted,
ness of the telegraph to the railroad
company is stated at $3,S75. GOO, re-
ports indicate that the entfre ad-
yances made by the railread amount &c
perhaps $1,000, 600, though this is prob
iab.y exaegerstzd. Similarly little is
known of the results Of its operstlcns
TIE statement has been made that even
at the low competitive rates 1t was Sell
sustaining; but this is open to some
question, and there is little DOUBT tnal
me continued necessity Of extension ano
the consequent further advances IL In
vclvc formed serious element among
the burdens under which the Baltimore
and Ohio Railroad property laooFed.
The policy Of the Western Union COM
panY throughout the contest bas neer
shaped with view to such an outcome
The competition of the Baltimore ano
Ono, as well as that Of the Postal Tele
graph and other minor competitors, was
met at all points, elthough the Lowering
OF rS1ee on business between the larges'
ksssfes of the country, in conjunction with
Y the cable rate war, which has also been
Ia progress for some time past, has Sc
riouslV Affected the Western UoloD's rev
enues, resulting in the abandonment OF
dividends upon it's stock for nearly
wear. To some extent, therefore, this poll
cy NAV have been effectusl in adding TO the
ADVERTISEMENTS of the Baltimore and ONO
and so well was it's object understood
that from the time it became known thai
Mr. Garrett wSs ready TO dispose OF stne
control of the railroad property little
doubt existed in any quarter IS to the Ill
innate disposition of the telegraph. Tne
bargain between the Western Union ano
, the syndicate is not unduly onerous fol
the former, al the agreed price, namely
SIS, o00, 900 of its stock in return for the
rsfi-oad compaoy's control of the Baltl-
more and OHIO Telegraph organization
IAkoush tangible increase OF the Western
fUnion's share capital, is no such ADDITION
Jof water as has been witnessed in former
n consultations.
Il II IS true thSt this by no means ends al
d present opposition to the Western Union
kWnst is known IS the United Lines Com,
paw 4 rscresBizsfian' of the Bankers
and Merchants Company, has system
extending to many important northeri
cirisss and with the Postal Telegraph sys
D sfan csn maintain Ell appreciable compe
es4tition. The latter concern, indeed, Il
>ltopsrolled by the same interest Whlci
owns the Commercial Cable Company
the disturbing element la the caoi'
4 situation and the cause or the wa
: in cable rates. which has caused losses q
the Western Union quite as seriously 81
any IL has suffered on account OF lent